abh

Why I'm Still Out of Mastercard and Visa

V and MA don't make the 2%. The banks do. It's what covers their risk. V and MA only make 20 cents per transaction. But those 20 cents sure do add up...

Why I'm Still Out of Mastercard and Visa

Even if the ecomony slows, V and MA make their 20 cents on each transaction even if that transaction is smaller that it once was. So they make the same 20 cents on $25 worth of gas as they do on $50 worth of gas... In other words, the only way their bottom line gets hurt is when there are fewer transactions. The way I see it, people will make almost the same number of transactions as they ever did, but spend less money on each one (i.e. cheaper clothes, cheaper food, cheaper hotel rooms, etc...) and with the growth oversea of the use of plastic, transaction volume is most likely going up!!